Juice Manufacturer
Practice this intermediate merger & acquisition case interview question in the Consumer Goods sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
This case tests the candidate's ability to structure an M&A valuation problem, extract key financial metrics from projections, and calculate ROI correctly. The solution requires careful interpretation of financial data (net sales, COGS, SG&A) to derive operating profits, then apply the purchase price formula using the revenue multiple to determine investment basis and returns.
Estimated Time
25 minutes
Difficulty
Medium
Source
PeterK
10
/ 100
A large dairy company, Lean Foods, would like to acquire Aunt Jen’s Organic, a juice producer. Its valuation will be based on a revenue multiple of 0.3x, given Aunt Jen’s Organic’s history of losses over several years. What 3-year ROI should Lean Foods expect from this investment?
Clarifying Information
- Exhibit 1. Projected Finances of Aunt Jen’s Organic, 2023-26F
- We’re in early 2024
- We can ignore taxes and interest expenses